April 20. Goldman news discounted, move back to risk assets

Stocks rebounded, bonds fell, as news about the SEC’s action against Goldman dissipated like a wisp of smoke. Copper, crude, aussie all fell but have rebounded sharply this morning.  Today Geithner and Bernanke testify about Repo 105…they will probably laud its use as evidence of superior financial engineering, cementing the stature of the US as a petri dish of innovation.

–Treasury vol was under pressure all day.  TYK 117 straddle settled at 37/64; expires Friday.TYM 117^ settled 1-35, low end of vol range.

–Piece from zerohedge: “Week 15 US Tax Withholdings Drop, YoY Cumulative Divergence Now At Second Highest For 2010”.  Tax withholding is apparently running around 10% less than last year.  Of course, unemployment was a mere 8.6% last April. 

–Large trade in EDZ options.  Fimat bought EDZ 9925c and sold 2x as many EDZ 9862p.  The calls traded 35k and open interest fell 10k.  Puts traded 88k and open interest was unchanged.

Posted on April 20, 2010 at 5:55 pm by alexmanzara · Permalink
In: Eurodollar Options

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